The nomination of Waller triggers a reassessment of policy logic, and the Federal Reserve may shift to a combination model of "balance sheet reduction + interest rate cuts."

During the Asian trading session, U.S. Treasury yields fell slightly across the board, driven by expectations related to the nomination of Kevin Warsh as the Federal Reserve Chairman. Erik Liem, an analyst at Deutsche Bank, noted in a report that Trump's nomination of Kevin Warsh has strengthened a market expectation that the Federal Reserve may not rely as heavily on balance sheet measures in the future as it has in the past.

Meanwhile, the U.S. Treasury's decision to maintain stable auction sizes aligns with market expectations, although officials stated that they are still assessing the possibility of increasing the auction sizes for bills, bonds, and floating rate notes in the future.